Tax – Accounting Methods

Tax accounting methods affect when an item of income or expense is recognized. A company’s tax accounting methods may include items such as: tax depreciation, revenue recognition, inventory capitalization, treatment of accrued expenditures, or other items. Proper tax accounting methods planning can best position your company to meet its long-term goals by optimizing cash flows, mitigating risk, and staying current with the latest legislative guidance.

CohnReznick’s Accounting Methods team can work with you to determine if a change is warranted, especially if new legislation is enacted. Our analysis starts with a thorough review of relevant documents – such as the most recent financial statements, trial balance, book-to-tax workpapers, and federal tax returns – to gain an understanding of your company’s current tax accounting methods. Following this review, our Accounting Methods team will provide you with potential opportunities and risk areas for your consideration. Our team of specialists has the expertise to assist you with preparing and filing the required forms to implement the opportunities we identified during this process.